Ocean Rig UDW (ORIG) Misses Q4 EPS by 3c

Ocean Rig UDW (NASDAQ: ORIG) reported Q4 EPS of $0.75, $0.03 worse than the analyst estimate of $0.78. Revenue for the quarter came in at $499.4 million versus the consensus estimate of $481.15 million.

George Economou, Chairman and Chief Executive Officer of the Company, commented:

"In the fourth quarter our fleet operated at 99.5% utilization continuing the strong trend from the previous three quarters. Our full year 2015 fleet operating efficiency was approximately 98.2%, allowing us to successfully monetize our contracted revenue backlog. For the fourth quarter of 2015 we recorded approximately $475.7 million in net revenue and after paying operating and G&A expenses, our EBITDA for the fourth quarter of 2015 amounted to approximately $300.8 million versus the fourth quarter of 2014 EBITDA of approximately $276.7 million.

"Given recent conditions in the debt capital markets and with a view to further strengthen our balance sheet, we decided to expand further on the Notes buyback program. As of today, we have bought $369.0 million of our 7.25% Senior Unsecured Notes due in 2019 and $340.3 million of our 6.5% Senior Secured Notes due in 2017.

"Regrettably, however, during the first quarter of 2016, three of our clients have decided to terminate drilling contracts. The Eirik Raude, Ocean Rig Olympia and Ocean Rig Apollo are currently en route to their stacking locations and remain available for alternative employment.

"With regards to the termination of the contract of the Ocean Rig Apollo, the Company is still in discussions with the lenders of the respective loan agreement about the consequences of such termination, which may involve a significant prepayment of the loan.

"The above terminations act as a reminder of the extremely challenging times facing the offshore drilling industry. The prospects for the industry remain bleak with limited visibility of new contracts and are likely to remain so at least until 2018."

For earnings history and earnings-related data on Ocean Rig UDW (ORIG) click here.

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